Start a Business in Lansing, MI: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Lansing, MI, is a plus for any entrepreneur. In general, setting up any form of business in Michigan, US, is the initial step to building an international brand.
Entrepreneurs across the globe are interested in starting and expanding their businesses in Lansing, MI. With an urban population of 326380 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in Michigan. Like most places in the US, Lansing, MI also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Lansing, MI has a proper business environment for all.
In this article, you will read about how to start a business in Lansing and why you should choose Lansing to start and run your business. We recommend you check below the important facts about Lansing, MI; these might help you.
On this page, you’ll learn about the following:
- Lansing, MI Household Income Statistics
- Lansing, MI Education & Labor force Facts
- Lansing, MI Demographics
- How to Start a Business in Lansing, MI
- Other Things to do After Starting Your Business
- Important Lansing Stats for Starting a Business
- Reasons to Start a Business in Lansing
- FAQ About Lansing, MI
Lansing, MI Household Income Statistics
|Lansing Median household income||44233 USD|
|Lansing households with dual income earners||48.2 %|
|Lansing households $150K+ Income||2.7 %|
|Lansing households $100K+ Income||11.3 %|
|Lansing households $100-150K Income||8.6 %|
|Lansing households $75-100K+ Income||11.7 %|
|Lansing households $50-75K+ Income||20.8 %|
|Lansing households $35-50K+ Income||17.1 %|
|Lansing households $25-35K+ Income||12.3 %|
Lansing, MI Education & Labor force Facts
|Lansing residents with a bachelor’s degree (or equivalent)||16.3 %|
|Lansing residents with at least a 4-year degree||26.3 %|
|Lansing residents with a graduate degree||10 %|
|Lansing residents with a high school diploma but no more||26.4 %|
|Lansing residents with less than high school education||9.7 %|
|Lansing residents with some college but no more||37.6 %|
|Lansing residents with a Bachelor’s degree or higher (STEM fields)||46 %|
|Lansing households that own (rather than rent) their residence||51.5 %|
|Lansing residents 16 and older in the labor force||67.3 %|
|Lansing residents unemployed||9.6 %|
Lansing, MI Demographics
|Lansing residents aged 0-9||13.7 %|
|Lansing residents aged 10-19||11.6 %|
|Lansing residents aged 20-29||20.1 %|
|Lansing residents aged 30-39||15.1 %|
|Lansing residents aged 40-49||10.9 %|
|Lansing residents aged 50-59||10.9 %|
|Lansing residents aged 60-69||10.2 %|
|Lansing residents aged 70-79||4.9 %|
|Lansing residents aged over 80||2.5 %|
|The average size of resident families in Lansing, MI||3.25|
|Estimated population per square kilometer in Lansing, MI||1158|
|Lansing, MI urban population (estimate)||326380|
|Lansing, MI municipal population (estimate)||117488|
Now that you know what makes Lansing of Michigan good for business, let’s get started with the exact steps on how to start a business in Lansing.
How to Start a Business in Lansing, MI
Starting a business in Lansing, MI, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in Michigan, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Lansing.
Step 0: Decide on What Business to Start
This is the first thing you work on, the type of business you want to start in Lansing. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,
- Through market research on demand trend
- Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
- What competitors are doing
- SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
- Your targeted buyers
Once you have the entire plan with you, you can continue working on the legal structure of your business. LLCBuddy will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.
Step 1: Choose Your Business Structure
The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a Michigan LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.
Step 2: Name Your Business
The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of Michigan to do the Michigan LLC name search before you pick the available name. Below are some of the naming rules you need to follow,
- You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector.
- If you are forming an LLC in Michigan, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
- The name should reflect the nature of your business. Any name that can confuse people should not be picked.
- You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
- You can reserve your business name for a certain time before you form your business in Lansing, MI by filing a name reservation application.
The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.
Step 3: Get a Registered Agent
A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a Michigan LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Lansing can be a registered agent. However, there are some requirements to becoming a registered agent.
- The person has to be 18+ years of age.
- Must be a citizen of the Michigan
- Must have a physical street address in the Michigan
- Must have legal rights to conduct business in the Michigan
Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.
Step 4: Register Your Business
The next step is to register your business under the Secretary of State, Michigan. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the Michigan SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Lansing, MI. Your Michigan LLC articles of organization should have the following details about your business
- Company/Business name, address
- Registered Agent Name, address
- Member-managed or manager-managed (in case of LLC)
- Type of business
Depending on the type of business structure, you may have to add some more information to the formation document.
Step 5: Write the Operating Agreement
An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,
- About Business
- Members and management
- Capital contribution
- Profit Distribution
- Change of membership
In future, if any member wants to leave the company or you want to dissolve the business, then the Michigan operating agreement has everything recorded, from clauses to contributions.
Step 6: Obtain EIN
EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.
Step 7: Get Business Bank Accounts
Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Lansing, MI. It increases your business credibility and liquidity. It will also be helpful for business loans.
Step 8: Create Your Business Website
Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.
Other Things to do After Starting Your Business
- Once your company is set in the Lansing, Michigan, you need to file your taxes and apply for licenses (if needed).
- Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.
Important Lansing Stats for Starting a Business
Before you start a business in Lansing, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.
Education & Employment
Lansing has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.
As we talk about the urban population density, the young population percentage in the city is approximately 20.1 (people in their 20s) and 15.1 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 32.7. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Lansing has approximately 2.5 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.
Another important factor to mention about Lansing is the home value of owned properties. The average value of owned houses is 88010. Also, the percentage of people living in their own houses is 51.5. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.
It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Lansing who still do not have health insurance. The rate of people not having health insurance is 7.1. This depicts the lifestyle and overall health demography of Lansing. As you plan to start your business in this city, you must consider this stat as well.
Income & Lifestyle
The income pattern of the people in this city is given in the table (Income) above. In Lansing, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.
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Reasons to Start a Business in Lansing
Lansing offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Lansing. Here are some of the reasons,
Stable Economic Growth
Lansing or any other city in Michigan has stable economic growth and an environment that helps any business to grow successfully. The economic structure of Michigan shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.
Minimize Personal Liabilities of the Entrepreneur
If you’re considering starting an LLC in Lansing, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Lansing is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.
Federal and State Tax Relaxation
There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the Michigan LLC tax structure to know more about the tax structures for LLCs in the state.
Government Incentives for Entrepreneurs
Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in Michigan or any other state. That means if you are operating any business in Lansing, then Michigan State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.
Low Corporate and Other Business Taxes
Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in Michigan. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.
Skilled Labour & Quality Manpower
In Lansing, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 67.3 is the percentage of labour participation. Hence, it is clear that having a business in Lansing will make a lot of difference to the existing labor force.
Demand for New Market and Industry
In Lansing, Michigan, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Lansing.
If we follow the US Data, the median value of commute time for the residents to their work is approximately 19.7. If you are starting a business here, you must keep in mind that commutation can be a point to consider.
Intellectual Property Protection
The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.
Lansing (aka ) is ranked at 2 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Lansing. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Lansing is 15.1. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.
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Best Time To Start Business In Lansing Michigan
Whether you are a start-up or a seasoned entrepreneur, Lansing, Michigan is a great place to start your business. The city has a stable economy, which means that your business will grow. Also, Lansing is known for its high tech industry, which means that your business may already have a large clientele.
Lansing is also an easy place to find business opportunities. Aside from the many advantages of establishing a business in the city, the state of Michigan also provides incentives for starting and maintaining a business. The incentives include a tax relaxation and business licensing. In addition, the state also provides incentives for creating jobs and contributing to the state’s GDP.
Getting a business bank account in Michigan will help ease the process of conducting business in the state. This account will increase your credibility, enhance your liquidity and facilitate business transactions. It is also useful for obtaining loans for your business.
Before you start a business in Michigan, you must have a clear plan on how you plan to make your business successful. Having a strong team is essential. This will ensure that you meet the hiring requirements of the state. You should also ensure that you have the appropriate insurance to protect yourself and your business. This will help prevent devastating financial losses. Besides, it is recommended that you consult a commercial insurance agent for more information.
If you want to start your own business, you should consider forming an LLC. An LLC is a legal business structure that is a great way to protect your personal assets and minimize your liability. You can also use Startup Space, an app-based platform that provides access to local resources and connects you with the entrepreneurial ecosystem of the Lansing area.
Another way to start a business in Lansing, Michigan is to form a partnership. This is one of the easiest business structures to set up. In fact, you can create a partnership with just one person. You can also open a partnership with a corporation. However, you must be aware that a partnership does not provide the same level of financial liability as a LLC. Also, you should also consider your personal preferences. If you want to form a partnership, you should choose something you’re passionate about.
You can also choose to set up your business as a sole proprietorship. A sole proprietorship is an informal business structure, but it has a 100% financial liability. A sole proprietorship does not have a separate legal entity, like a corporation. It is also very easy to form a sole proprietorship, so you should consider this option. However, it is important to understand that a sole proprietorship is not tax-free.
Starting a business in Lansing, Michigan requires several financial and legal decisions. You must register your business, get the appropriate insurance, and make sure that you file all your taxes. You will also need to have a website for your business. Your website should include your company’s name, logo, and contact information. You can also use social media accounts to promote your business.
FAQ About Lansing, MI
Deciding whether or whether to relocate to Lansing, MI, is a smart decision is a little tricky. You may make a choice based on the kind of company you are doing. For aspiring entrepreneurs who wish to launch their own business, Lansing offers amazing chances.
Find the area that is most suited for your career or company while deciding where to reside in Lansing, MI. You may choose a neighborhood in Lansing, MI based on the customers you have in mind for your company.
You must complete an application form and submit it for approval if you want to create an LLC in Lansing, MI. Include the name of your LLC, the name of the registered agent, the registered agent’s address, and the name of the registered agent’s postal address.
In Lansing, MI, there are several business ventures that may be launched with only $1000. You may launch an online sales company. internet retailers are another option. You may launch a firm that deals with technology and computers and call it something catchy.
It’s a terrific place to live, Lansing, MI. This city is renowned for its people, art, culture, and, of course, its thriving economy. Living in Lansing or moving there will allow residents and potential residents to experience a wide range of commercial, artistic, and cultural opportunities.
Lansing, MI’s real estate market is dynamic; if shock affects the industry, house values may decline. On the other hand, Lansing, MI, real estate is a flourishing industry. So, it is difficult to predict whether or not the price of homes would decrease.
No, LLCs are not free in Lansing, MI. To form an LLC in Lansing, MI, you must pay the LLC filing fee charged by the state. Also, there are some taxes one has to pay to run an LLC in Lansing, MI.
The five most crucial items you’ll need to start a company in Lansing, MI, are: 2. A business name 3. Investment money 4. Valid business permits 5. A strategy for promoting your company via marketing.
Some of the unusual company concepts in Lansing, MI include pet sitting, virtual interior design, and online pet grooming consultations. Try these original ideas as a starting point if you want to open a company in Lansing, MI. Additionally, you may try selling handcrafted home décor.
LLCs are quite popular in Lansing, MI. An LLC is less complicated to form and has a pass-through tax. Due to this reason, many startups and small businesses in Lansing, MI prefer LLCs over other business structures. Besides, LLCs are easy to dissolve if you don’t want to continue.
Starting a company in Lansing, MI requires a few legal paperwork. For your firm to get off the ground, you need a general business license. Depending on the nature of your firm, additional permissions and licenses can be needed. Additionally, you must the necessary paperwork for company registration.
In Lansing, MI, it might be difficult to start a company. There are several red tape hurdles to clear, and depending on the company model you choose, the price may change. An LLC for your company in Lansing, MI, for instance, may cost $50 to form.
You may act as your own registered agent for an LLC in Lansing, MI. You must be older than 18 years old and be able to legally do business in Lansing, MI in order to become a registered agent there.
Lansing, MI’s rapid growth is caused by the city’s service and IT industries. Lansing offers a fantastic business climate with advantages that support new company owners. Consequently, the city’s economy is expanding.
In Lansing, MI, a sole proprietorship is preferable to an LLC since it is less expensive to launch an individual business. If you compare an LLC to a sole proprietorship in Lansing, MI, an LLC can be a superior option.
A registered agent in Lansing, MI can be anyone who is able to conduct business in Lansing, MI. In every LLC in Lansing, MI a registered agent should be appointed to receive the documents. You can be your own registered agent in your LLC.
You should register your business name with Lansing, MI so that no one else can use your business name. You can register your business name with the secretary of state. You have to pay the reservation fee, and you can register your business name for up to a certain time.
Many companies in Lansing, MI, are assisting the economy in expanding more quickly than it did in the past. The service industry has significantly boosted Michigan’s economy in recent years. As a result, Lansing is prosperous and expanding.
World-wide, unicorns are ubiquitous. Undoubtedly, Lansing, MI, is home to a fair share of unicorns. Even while Lansing may have more unicorns than ten, not all of them are equally well-liked.
Living in Lansing, MI is cheaper than living in Houston. Lansing has a lower cost of living and is a more affordable place to live. Though, some may find Houston more affordable in terms of a business perspective. It is very relative, depending on the individual.
In Lansing, MI, there are several tiny companies that generate excellent profits. Additionally, these firms don’t need a lot of capital to start. These companies include those that sell products online, deal in tiny cars, handle real estate, and operate restaurants.
The price to file a DBA is $10 in Lansing, MI. LLCs must pay this sum to the Michigan Secretary of State in order to reserve their company name prior to starting their operations.
Making $18 in Lansing, MI is not that bad for a startup. Though, it would be great if you could make around $40 an hour for a city like Lansing. However, as a small business, it is good money.
It’s wise to renew your LLC in Lansing, MI, on time. On the website of the Michigan Secretary of State, you may look up the current status of your LLC and see when it has to be renewed. You may utilize the internet to renew your LLC if it needs to be updated.
Finding the appropriate financing source for your concept should be your first step. Start by seeking for angel investors if you want to raise money in Lansing, MI. Look for a small company loan if you wish to get cash from a bank.
Yes, you may operate a company from your Lansing, MI, home. However, not every form of company can be run from home. Whether you want to run your company from home in Lansing, find out if you need a license.
Lansing, MI, is one of the top cities to relocate your company to when it comes to business. Lansing is a business-friendly city in Michigan, so moving your firm there won’t be difficult.
An LLC is eligible for several tax deductions in Lansing, MI. Business insurance, office supplies, travel or automobile expenditures for work, costs associated with a home office, and a host of other things are a few of them. To learn more, contact your local tax office.
In Lansing, MI, it is possible to start a company with no capital. However, in order to register your firm with the Michigan SOS, you must pay a minimum filing cost. These filing costs, however, are tax deductible. Consequently, you may be able to launch your company for nothing.
LLCs in Lansing, MI, require insurance. In general, it’s a good idea to get insurance for your LLC. If your LLC in Lansing, MI has employees, several insurances, including workers’ compensation, are required. For further details, you must see the Michigan SOS website.
The cost of starting a small business in Lansing, MI varies depending on the type of business you are starting. Some of the more popular small business ideas in Lansing are restaurants, coffee shops, and bars. If you are starting an LLC, the cost in Lansing, MI is $50.
The cost of business insurance in Lansing, MI varies depending on the type of business you have, the size of your company, and the nature of the business. A small business with less than 10 workers, for instance, can spend as low as $1,000 year for general insurance.
In Lansing, MI, registering a company takes a few days. The procedure is straightforward, and the city provides all the documents and information you want on a useful website. Online registration is free and available.
Lansing is a vibrant city with a lot to offer, but the rent there is among the highest in the nation. So, in Lansing, MI, which is better—renting or buying? Whether a person intends to make long-term or short-term investments relies on their investing strategy.
Numerous low-cost enterprises may be found in Lansing, MI. If you’re ready to launch a company in Lansing, MI, you may do it by operating an internet store. In Lansing, MI, you may also establish a low-cost home baking or teaching company.
Starting a business in Lansing is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, Michigan has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Lansing, MI.